Trustees Statement about Capita Employee Benefits

31 January 2018

The Trustees are fully aware of the recent press coverage about the Capita Group following the trading update it issued on the 31st January. The Trustees keep abreast of news about all its key suppliers and regularly meet with them to discuss their future plans and any impact upon the Scheme and its members. The Trustees can provide assurance to our members that their BCSSS pensions are completely secure.

The only involvement of Capita Group with the Scheme is the administration of pensions through Capita Employee Benefits (“CEB”) who continue to be a core operating division within the Capita Group. The due diligence undertaken by the Trustees ahead of contracting with CEB to administer BCSSS Pensions showed that CEB holds a strong capital position in its own right and is a profitable and successful business in the provision of pension administration and other employee solutions to some of the largest pension schemes and companies in the UK. CEB is also regulated by the Financial Conduct Authority and as a result they have to evidence their financial strength and adequacy of capital on a regular basis as a standalone legal entity. The Trustees will continue to closely monitor the company and service performance as they do for all key suppliers and proactively seek clarification on any matters that might have an impact upon the Scheme. We believe that the Capita Group proposals for strengthening of the Group balance sheet and a focus on core business areas, such as Capita Employee Benefits, will only have a positive impact upon the present Scheme administration arrangements and the ongoing payment of BCSSS pensions.